Ministry of Finance: Year End Review 2017 - Regarding 7th Central Pay Commission

Ministry of Finance: Year End Review 2017 - Regarding 7th Central Pay Commission

Enhancing the quality of life remained primary goal for Government when it put into implementation the recommendations of the 7th Central Pay Commission to benefit more than 48 Lakh Central Government Employees.

Department of Expenditure (DOE)

• General Financial Rules (GFRs), 2017 were released on 7th March, 2017 to enable an improved, efficient and effective framework of fiscal management while providing the necessary flexibility to facilitate timely delivery of services.
• 7th CPC - On 28th June 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances came into effect from 1st July, 2017 benefitting more than 48 lakh Central Government Employees.

While approving the recommendations of the 7th CPC, the Cabinet had decided to set-up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The 7th CPC adopted a threepronged approach in examining a total of 197 allowances which involved an assessment of the need for continuation of each allowance, appropriateness of the set of people covered by the allowance and rationalisation which involved clubbing of allowances with similar objectives. Based on the examination on these lines, the 7th CPC recommended that 53 allowances be abolished and 37 be subsumed in an existing or a newly proposed allowance. For most of the allowances that were retained, the 7th CPC recommended a raise commensurate with inflation as reflected in the rates of Dearness Allowance (DA).

A new paradigm was evolved to administer the allowances linked to risk and hardship. The myriad allowances, their categories and sub-categories pertaining to civilians employees, CAPF and defence personnel were fitted into a table called the Risk and Hardship Matrix (R&H Matrix).

Source: DoE

Read More

NFIR New Year Message

NFIR New Year Message

No.IV/NFIR/7 CPC(Imp)/Allowance/2016/Part I

Dated: 25/12/2017

MESSAGE

Dear Brothers/Sisters,

We Will be celebrating New Year Day on January 1, 208 with disappointment and  agony as the Government has done grave injustice by reducing the percentage or various  Allowances and also by not granting the Allowances from 1st January. 2016. Almost all Railway employees in all corners Of Indian Railways have been deprived Of their legitimate Allowances in terms Of percentages existed prior to acceptance Of 7th CPC report.

The Running Staff, Brothers/Sisters, are aware that NFIR has placed cogent case before the Railway Board for hiking Kilometrage rates on the basis of Running Allowance formula and revision of TA rates. Our presentation was admired by the Running Staff. The Railway Board has discussed with NFIR twice on revision of Running Allowance rates and on both the occasions we conveyed the logic for upward revision or mileage rates and also revision of other related Allowances.

It is sad to mention that the decisions reached negotiated settlement concerning various categories of employees are yet to be implemented while we are walking into New Year on 1st January, 2018. As part of celebrations, everyone of us should convey our deep sense Of disappointment and anguish to the Railway Ministry and the Government and at the same time urge the Government to respond to our issues quickly and positively.

Yours fraternally,

sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Read More

Promotion of Defence Production

Promotion of Defence Production

Defence manufacturing is primarily driven by capital acquisition of defence equipment. Under 'Make in India' initiative of the Government, several measures have been taken to promote indigenous design, development and manufacture of defence equipment in the country by harnessing the capabilities of the public and private sector. These measures include according preference to procurement from Indian vendors under the Defence Procurement Procedure (DPP), liberalization of the licensing regime and FDI policy by raising the cap on FDI in the defence sector, simplification of export procedure, streamlining of defence offset guidelines etc. Recently, the Government has notified the ‘Strategic Partnership (SP)’ Model which envisages establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.

In the last three financial years i.e., 2014-15 to 2016-17, the Government has accorded Acceptance of Necessity (AoN) for 105 proposals worth Rs.2,33,000 Crore approximately, in 'Buy (Indian-Indigenously Designed & Developed Manufactured (IDDM)', 'Buy (Indian)', 'Buy and Make (Indian)' and 'Make' categories of capital acquisition i.e. Request for Proposal (RFP) will be issued to Indian vendors only.

As on date, no in-house development project proposal approved by Ordnance Factory Board for development of small arms is pending for approval by Department of Defence Production.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri PR Senthil Nathan and Shri Bharathi Mohan RK in Lok Sabha today.

Read More

Pay Revision of Nurses

GOVERNMENT OF INDIA
MINISTRY OF HEALTH AND FAMILY WELFARE
LOK SABHA
STARRED QUESTION NO: 103
ANSWERED ON: 22.12.2017

Pay Revision of Nurses

BHAVANA GAWALI (PATIL)
Will the Minister of
HEALTH AND FAMILY WELFARE be pleased to state:

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:
(a) whether the All India Nurses Confederation has demanded review of their pay scale and increase in their allowances;
(b) if so, the details thereof;
(c) whether the Government has taken any decision in this regard and if so, the details thereof; and
(d) whether the Union of Nurses had called a pan-India strike in the recent past and if so, the details thereof along with the action taken by the Government to address their grievances?

ANSWER
THE MINISTER OF HEALTH AND FAMILY WELFARE
(SHRI JAGAT PRAKASH NADDA)
(a) to (d) : A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO LOK SABHA
STARRED QUESTION NO. 103* FOR 22TH DECEMBER, 2017

(a) to (c) - Government has not received any representation/demands from All India Nurses Confederation. However, representation from All India Government Nurses Federation (AIGNF) was received in the Ministry demanding revision in pay and allowances against 7th Central Pay Commission's report. The Government examined their demands along with demands of other Associations. The Government accepted the Commission's recommendations on minimum pay, fitment factor, Index of Rationalisation, Pay matrices and general recommendations on pay without any material alteration vide Resolution dated 25.07.2016. The recommendation on allowances was referred to an Empowered Committee comprising of Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel & Training, Posts & Chairman, Railway Board as Members for further consideration.

AIGNF threatened to go on a nationwide strike with effect from 2nd August, 2016. Their main demands were granting entry pay of PB-3 with GP 5400/- to Staff Nurse ( Nursing Officer), Nursing allowance, Nurses to be covered under Risk and Hardship Matrix (R1H1), Uniform and Washing allowance, Knowledge allowance and other allowances according to the Grade Pay. Ministry of Health and Family Welfare examined their demands and recommended entry Grade Pay of Rs.5400/- to Staff Nurse (Nursing Officer) to Ministry of Finance. Detailed note in respect of allowances admissible to nurses vide 7th CPC recommendations, demand of nurses and Ministry's response thereon was sent to Empowered Committee for consideration. (Annexure).

(d) AIGNF went on a nationwide strike on 2nd September, 2016 reiterating their earlier demands on revision of pay and allowances. The strike was called off after discussion on 3.9.2016. The Ministry of Health & Family Welfare again referred the demands of the Association along with its recommendations to the Empowered Committee. AIGNF also made their presentation before the Committee on allowances on 15.9.2016.

The Empowered Committee examined the demands of the Nurses Associations. The accepted recommendations on allowances were notified vide Government of India notification dated 06th July, 2017. The Government of India has accepted to retain and rationalize Nursing allowance and Operation theatre allowance. Uniform and washing allowance has been retained and subsumed under the Dress allowance. Most of the demands of AIGNF have been considered and concluded to their satisfaction and a robust system of monthly interaction with nurses has been put in place.

LOK SABHA

Read More

Revival and Restructuring of CPSEs

Revival and Restructuring of CPSEs

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 1375
ANSWERED ON: 22.12.2017

Revival and Restructuring of CPSEs

SHRIKANT EKNATH SHINDE
DHARMENDRA YADAV
ANANDRAO ADSUL
PRITAM GOPINATH MUNDE
Will the Minister of

FINANCE be pleased to state:-
(a) whether the ailing Central Public Sector Enterprises (CPSEs) need revival and restructuring and if so, the details thereof:
(b) whether the Government has issued guidelines for revival and restructuring of such ailing CPSEs and if so, the details thereof:
(c) whether the private participation is also being considered in this regard and if so, the details thereof: and
(d) the extent to which these guidelines will be beneficial for revival and restructuring of these CPSEs?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PON. RADHAKRISHNAN)

(a) to (d) Department of Public Enterprises (DPE), as a nodal department, have issued guidelines on 29.10.2015 for “Streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak CPSEs”. CPSEs function under the administrative control of various Ministries/ Departments. As per the guidelines, the responsibility for addressing the sickness of Central Public Sector Enterprises (CPSEs) lies with the concerned administrative Ministries/ Departments. The administrative Ministries/ Departments monitor the sickness of CPSEs and identify the sick/ incipient sick/ weak CPSEs functioning under their control based on the performance and take timely redressal measures. The concerned administrative Ministries/ Departments formulate revival/ restructuring plans, which may include disinvestment or privatization, for the CPSEs on a case-to-case basis. Guidelines lay down that the process for revival and restructuring of sick / incipient sick and weak CPSEs be made time bound, comprehensive, performance driven and efficient.

Read More

Government says No Proposal to Revise Income Tax Rates this year

Government says No Proposal to Revise Income Tax Rates this year

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

LOK SABHA
UNSTARRED QUESTION No. 1355

TO BE ANSWERED ON FRIDAY, THE 22ND DECEMBER, 2017
01, PAUSHA, 1939 (SAKA)

AMEND INCOME TAX RATES

1355. SHRI DEVENDRA SINGH BHOLE:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government proposes to amend the present rates of income tax so that more people may pay income tax;
(b) if so, the details thereof and the benefits likely to accrue to common man and the Government by this step; and
(c) if not, the reasons therefor?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)

(a) to (b) No Madam. Currently, there is no such proposal under consideration.
(c) The rates of income tax are prescribed through the Finance Act every year

Read More